How To Avoid Forex Trading Scam
Unfortunately, fraud exists in almost every industry on the planet, and the Forex market is one of the most abused ones.
The Most Common Warning Signs Of A Forex Scam
Forex is one of the most popular forms of investment, but yet of the most difficult to detect in relation to scams. How to avoid getting scammed?
Forceful Forex Brokers
Fully legitimate and compliant Forex Traders will not show any signs of pushy tactics when marketing their expertise or service to prospective investors. If someone you do not know contacts you persistently, try to be on guard from the start. Always seek advice from certified professionals or references from people you know.
Exaggerated Claims of High Statistics and Returns
If someone claims massive returns and provides you with overly high statistics you are probably dealing with the Forex fraudster. Always remember: if it sounds like it is too good to be true. It probably is. The success of your investment is highly dependent on a constantly changing market. There are chances that you may receive returns quickly, but you may as well not. Do not trust a company that pursues the point of showing consistently high statistics on returns. Such misleading claims are false because it is not feasible in the foreign exchange trading market and it does not work this way.
High Spread Offers
The most commonly used spread normally ranges between two to three points in USD/EUR. If a Forex Trader offers you seven points threads you are definitely dealing with the fraudster, please remember that most currency pairs have a price of four decimals.
Complicated Wording In Presentations
A Forex scammer would always operate with difficult-to-understand terminology, especially for a total beginner. Learn, research, and ask for advice from a licensed professional or person you know and trust.
Restrictions to Withdraw Funds
If you are experiencing difficulties to withdraw funds from your account it should trigger an immediate warning to reconsider your investment and terminate your account with a broker as you are definitely dealing with a scammer.
Always check whether a broker is registered with the relevant regulatory authority. Avoid signing up with a broker who fails to provide you with the proper credentials or gives vague explanations of why it is not available.
Protect Your Investment
You should always partner with a reputable and well-established broker who has checkable references from past and present investors. Do not be tempted by promises of immediate high returns, be cautious and on guard during your vetting process.
At S-Group, a certified and licensed broker Forex Trading platform, we take our clients' investment safety seriously and regularly update you on milestones and what to avoid on your journey to financial freedom.
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